5 Biggest Reverse Mortgage Questions
Articles - Mortgage
To make sure you have all the facts necessary to make a smart and informed decision about a reverse mortgage, Redwood financial Services has compiled a list of the 5 most commonly asked questions. The list should help you get started on learning.
by DavidPrulhiere


To make sure you have all the facts necessary to make a smart and informed decision about a reverse mortgage, Redwood financial Services has compiled a list of the 5 most commonly asked questions. The list should help you get started on learning.

1. If I owe nothing on my home, can I do a reverse mortgage? Not having a mortgage on your home will allow you to qualify for more cash availability. So absolutely, you can do a reverse mortgage.

In the more common event of having a mortgage, you can still do a reverse mortgage. The first step is paying off your mortgage(s). After that, any available equity remaining can be taken as a lump sum, credit line, or monthly installments.

2. I am behind on my taxes, can I do a reverse mortgage? This is one of the great reasons to do a reverse mortgage. You will have a chance to get caught up and get the tax man off your back. If you live in Oregon, consider deferring your property taxes once the reverse mortgage is complete.

3. Does the Bank take the title to my home? The title will be used as the collateral, but you don't give up your home. It is still your home and you retain all rights to refinance or sell. any remaining equity always belongs to you or your heirs.

4. Can I use a reverse mortgage to purchase a home? As of January 2009, there is a program that allows you to purchase a home with a reverse mortgage.

5. Can I use up my equity in the home and what happens if I do? It takes roughly 25 years to use up the equity completely if you factor in that your property will appreciate over the next several years. In the unlikely event that you do use it up, you cannot be forced to move. You get to live in the home as long as you are able.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Stop by our website if you want to see more questions and answers that are frequently asked about reverse mortgages. There is a large amount of educational information for free. Get informed before you make your decision.